The OPEC+ alliance announced last week to slash production by 2 million barrels of oil per day. A move that could drive oil price back up after weeks of a downward trend.

This comes at a time when many around the globe are facing severe hardship because of high fuel prices. Any more price increase in fuel will exacerbate the high cost of living and drive many below the poverty line, especially with the prevailing economic situation in Ghana.

The two largest oil producing countries; Russia and Saudi Arabia along with their alliance, OPEC+ agreed to a massive cut to oil production. The 24 oil producing countries met in person in Vienna for the first time since the pandemic as a sign of cohesion.

OPEC+, formed in 2016, consists of 13 Petroleum Exporting Countries and 11 other non-OPEC members. They attributed their decision to "uncertainty that surrounds the global economic and oil market outlook."

The move was seen as a rebuke to US who have been appealing to Saudi Arabia and OPEC to increase production to make up for the lost supply due to the war in Ukraine. President Biden has been trying to reign in prices at the pump ahead of the midterm elections.

The White House called the decision "short-sighted" and said in a statement the administration would "deliver another 10 million barrels from the Strategic Petroleum Reserve to the market next month, continuing the historic releases the President ordered in March."

The world consumes 100 million barrels of oil a day and taking off 2 million will have a noticeable impact. Ghana alone uses 65,000 barrels of oil daily.

The solution for Ghana will be the same as the response from the US. A release from the strategic petroleum stock of crude oil and a reliable refinery to process the crude oil to supply Ghanaians with sufficient refined petroleum products.

However, Tema Oil Refinery is no longer reliable operating refinery. Nonetheless, there’s a big potential for Ghana to have energy security with the new refinery which is being built in Tema. It will protect the economy from the volatility of the world oil market and create high quality petroleum products for Ghanaians and the world.

It’s important that the government fully support the refinery to operate smoothly without any interruptions. This will protect Ghanaians from the fluctuations in the world oil market and stabilize the price of fuel. There are not many options for Ghana without a reliable source of crude oil and refinery to combat such moves by the global oil cartel, OPEC+.